It is a common misunderstanding that the same rules apply to a man and a woman or gay partners in unwed co-habitation (common law marriage) as to married or registered partnership couples. The fact is, however, that the rules of dividing property and liabilities/debt into equal halves upon separation, do not apply to co-habiting partners, and they are not legally entitled to inheritance upon the death of the other.

In Iceland, both the husband and the wife/registered partners are entitled to a divorce, if they file for it. In other words, the divorce will become final, even if one spouse/partner denies the other a divorce. Refusing to sign under a divorce agreement can delay the process. Legal separation and divorce permits are issued by district commissioners (sýslumenn) or their deputies with legal training, if both parties are in agreement. Otherwise, divorce must be sought before the municipal courts.